Further to our e-zine dated 9 February 2018, the Cayman Islands Monetary Authority ("CIMA") has reaffirmed its position on AML/CFT requirements and, as previously communicated by DMS, has confirmed that natural persons must be appointed for the AML Compliance Officer ("AMLCO"), Money Laundering Reporting Officer ("MLRO") and Deputy MLRO ("DMLRO") roles (each an "Appointee").

CIMA has confirmed that additional guidance will be issued confirming that the delegating party (in this case the fund) should ensure that:

  • Each Appointee have "adequate and appropriate knowledge and expertise" to fulfil their roles;
  • A documented risk assessment of the Appointee (including country risk) be conducted;
  • A formalized agreement be put in place setting out the responsibilities of each party;
  • The policies and procedures of the Appointee are subject to initial review and tested periodically;
  • Cayman Islands standards are applied where the appointee is in a country which has lower standards.

Action Required

All regulated funds (unregulated funds have a grace period until 31st May 2018) are required to appoint individuals who are suitably qualified and experienced as AMLCO, MLRO and DMLRO (the AMLCO appointment can be held with either (but not both) of the MLRO/DMLRO appointments). Immediate action on the part of CIMA regulated funds ("Funds") is required to address this requirement.

DMS Group Chief Compliance Officer, Don W. Ebanks noted that "it is very helpful for CIMA to guide the financial services industry towards a clearer understanding of the details of the Anti-Money Laundering Regulations and we look forward to being joined in our work assisting asset managers in taking the necessary steps to ensure that Cayman based funds comply with these requirements."

Don was previously the first Head of Compliance at the Cayman Islands Monetary Authority and the Executive Director of the Secretariat for the Portfolio of Finance & Economics (now the Ministry of Financial Services) and is widely recognized as a leading expert on AML/CFT matters in the Cayman Islands. Don is supported by a team of highly skilled and experienced AML professionals based in the Cayman Islands who draw on global insights from our eight offices.

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